Andrej Babiš, the self-styled tycoon that secured victory in last month's parliamentary vote, has refused to offload his extensive corporate assets, while insisting he will resolve a conflict of interest that might block him from taking the position of head of government.
Babiš, whose political movement emerged victorious in the October election but lacked a majority in parliament, declared in a social media post that he would not divest his Agrofert conglomerate, which operates in agriculture, food processing, and chemical industries.
“I have repeatedly stated I will not sell Agrofert. I have repeatedly stated I will resolve the conflict of interest in compliance with national and European laws,” the billionaire commented. “This is different from selling a pastry in a bakery.”
The Czech president, Petr Pavel, stated that the 71-year-old political figure must clarify openly how he will eliminate ethical conflicts stemming from his corporate dealings before assuming the role of prime minister.
The Czech constitution “explicitly requires the head of state to take into account the potential occurrence of a ethical issue and the possibilities for its resolution” when selecting cabinet members, the presidential administration explained.
The president “wants it to be clear in what specific way Andrej Babiš will meet his statutory duties”, the announcement said, stating that Pavel was prepared to designate Babiš as premier “immediately” once the issue was resolved.
Babiš's numerous companies, mostly under the Agrofert group, operate in the Czech Republic and other central European countries, benefiting from substantial funds in domestic and European agricultural and other subsidies, as well as government deals.
Under national legislation, cabinet members are barred from receiving public aid or agreements. The ethics watchdog Transparency International has stated that to prevent a conflict of interest, Babiš must either divest, decline public contracts, or not enter government.
Babiš said he would “follow the regulations” if selected as prime minister, but declined to explain how in beforehand because the matter was “an highly personal and private affair for me, and journalists will always question me regardless”.
During his first term as premier, from 2017 to 2021, Babiš encountered multiple court cases and an European inquiry over possible ethical issues. He temporarily moved his assets into fiduciary arrangements, while retaining some influence over them.
A judicial body and the EU executive both ruled that this did not suffice. Babiš stated last month that he was again the exclusive proprietor of Agrofert and insisted he was “implementing measures” to prevent a ethical problem, but declined to reveal details.
The billionaire populist has signed a coalition agreement with two rightwing fringe parties, the ultra-conservative, pro-Russian SPD, which has called for a public vote on exiting the EU, and the Motorists for Themselves, which has mainly opposed the EU’s environmental policy.
The incoming administration, if confirmed, is likely to strengthen the populist bloc in central and eastern Europe and might strain backing from Western nations for Ukraine – although Babiš has called Ukraine’s president, Volodymyr Zelenskyy, to assure him of the nation's backing.
Pavel, who as president shares responsibility for international relations, also requested that the coalition’s programme add a statement on the official stance on Russia’s war in Ukraine, with a pledge to fulfilling alliance duties.
The head of state has earlier stated he would not approve any ministerial nominees who might question the Czech Republic’s international alliances, a condition that the ultra-conservative party has said it will satisfy by nominating independent technocrats.
